“Monetary policy is easy and by one measure has gotten easier,” according to Deutsche Bank. DB notes “Against the backdrop of an accommodative monetary stance, the economy will continue to perform well, especially interest sensitive sectors.”

Real Fed Funds Rate at New Low Source: DB Global Markets Research

“It is no wonder then that interest sensitive spending — housing construction, building material, furniture and motor vehicles sales — has been so strong. Low real rates encourage consumers to take on debt. This will continue until interest rates move up substantially from their current levels.”

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

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About Barry Ritholtz

Ritholtz has been observing capital markets with a critical eye for 20 years. With a background in math & sciences and a law school degree, he is not your typical Wall St. persona. He left Law for Finance, working as a trader, researcher and strategist before graduating to asset managementRead More...

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